Islamic financing increases to OMR2.1 billion by end of May

Muscat: Islamic banking entities provided financing to the extent of OMR2.1 billion as at the end of May 2016, compared to OMR1.3 billion a year ago, according to the monthly bulletin issued by the Central Bank of Oman (CBO).
Total deposits held with Islamic banks and windows also registered a significant increase to OMR1.8 billion in May 2016 from OMR1 billion outstanding as at the end of May 2015. Total assets of Islamic banks and windows combined amounted to OMR2.6 billion as at the end of May 2016 which constitute about 8.2 per cent of the banking system assets.
The combined balance sheet of conventional and Islamic banks (other depository corporations) taken together, provides a complete overview of the financial intermediation taking place in the banking system in Oman. The total outstanding credit extended by the other depository corporations stood at OMR21.3 billion as at the end of May 2016, a rise of 13.5 per cent over the level witnessed a year ago.
Credit to the private sector increased by 15.5 percent to OMR19 billion as at the end of May 2016. Of the total credit to the private sector, the share of the household sector (mainly under personal loans) stood at 46 per cent, closely followed by the non-financial corporate sector at 45.7 per cent, financial corporations at 5.3 per cent and other sectors the remaining 3 per cent.
Total deposits registered a modest growth of 0.4 per cent to OMR19.7 billion as at the end of May 2016. Private sector deposits of the banking system registered a growth of 5.8 per cent to OMR13 billion as at the end of May 2016.
Sector-wise, the share of households was 50 per cent of the total private sector deposit base, followed by non-financial corporations at 27.5 per cent, financial corporations at 19.4 per cent and the other sectors at 3.1 per cent.
As at the end of May 2016, narrow money stock (M1) when measured on year-on-year basis, registered a fall of 3.2 per cent to RO 5.3 billion. On the other hand, Quasi-money (savings and time deposits in Omani rials, certificates of deposit issued by commercial banks, margin deposits and foreign currency denominated deposits) witnessed an appreciable growth of 9.2 per cent during the period.
Broad money supply M2 (that is, M1 plus quasi-money) stood at OMR15.5 billion at end of May 2016, up from OMR14.8 billion a year ago, registering an increase of 4.6 per cent during the period.
In respect of domestic interest rate structure of conventional banks, the weighted average interest rate on Omani rials deposits firmed up from 0.908 per cent in May 2015 to 1.163 per cent in May 2016 while the weighted average in Omani rials lending rate decreased from 4.948 per cent to 4.835 per cent during the same period.
The overnight rial Omani domestic inter-bank lending rate firmed up to 0.385 per cent in May 2016 from 0.146 per cent a year ago.